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ZOOPLUS AG
INVESTOR PRESENTATIONDR. CORNELIUS PATT, CEO
ANDREAS MAUERÖDER, CFOSeptember 2020
2
DISCLAIMER
This document includes supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial
measures should not be viewed in isolation as alternatives to measures of zooplus’ financial condition, results of operations or cash flows
as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled
financial measures may calculate them differently.
This document contains statements related to our future business and financial performance and future events or developments involving
zooplus that may constitute forward-looking statements. We may also make forward-looking statements in other reports, in presentations,
in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-
looking statements. Such statements are based on the current expectations and certain assumptions of zooplus’ management, and are,
therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond zooplus’ control, affect zooplus’
operations, performance, business strategy and results and could cause the actual results, performance or achievements of zooplus to be
materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking
statements or anticipated on the basis of historical trends. Further information about risks and uncertainties affecting zooplus is included
throughout our most recent annual and interim reports, which are available on the zooplus website, investors.zooplus.com. Should one or
more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or
achievements of zooplus may vary materially from those described in the relevant forward-looking statement as being expected,
anticipated, intended, planned, believed, sought, estimated or projected. zooplus neither intends, nor assumes any obligation, to update or
revise these forward-looking statements in light of developments which differ from those anticipated.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and
percentages may not precisely reflect the absolute figures.
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
3
ZOOPLUS AG A LEADING PLAYER IN THE BOOMING
PET SUPPLIES CATEGORY
1) in terms of sales and active customer base; 2) as of end of H1 2020, based on LTM
✓ 8.1 million active customers 2
✓ Number one online retailer in
Europe and second in total market 1
✓ 95% revenue retention rate 2
✓ EUR 1.5 bn in sales (2019)
✓ Digital offering for pet owners in
30 countries and 24 languages
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
Specialist retailer Customer benefits first
100% ecommerce Efficiency-driven
Pan-European Governance compliant
Product=Data+Tech driven Strategic Partner
20+ years into the business, we know what we stand
for – Our USPs
4ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
5
ZOOPLUS IS THE DEDICATED PET SPECIALIST THAT CARES
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
6
MEGATRENDS ARE FUELING GROWTH PROSPECTS IN
PET SUPPLY CATEGORY
GROWING PET POPULATION
Over 80m households in Europe with
one pet or more
HUMANIZATION OF PETS
Pets are increasingly viewed as a
family member with spend per pet
increasing
SPECIALIZED PET NUTRITION
Premiumisation trend in pet food driving
specialty trade to grow faster than
grocery segment
»HUGE COMMERCIAL
OPPORTUNITY IN
PETS
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
7
PET SUPPLIES RETAIL LANDSCAPE IN EUROPE
COMPETITION FALLS INTO THREE CATEGORIES
BRICKS AND MORTARONLINE PURE PLAY MASS GENERALIST REGIONAL ONLINER
We‘re operating in a highly fragmented market
✓ Valuable industry partner
to suppliers
✓ Ideally positioned to
capture growing online
share
✓ Low CAPEX requirements
and significant scale
advantages
✓ Strong logistics network
✓ Own brand portfolio adds
to differentiation and
supports incremental value
creation
− Limited access to premium
brands
− Supporting digitization of
category
− Low offering overlap: only
20% of zooplus Top 500
Sellers available on
amazon prime
− High e-commerce and
logistics competencies
− Online offering competing
with physical store
presence
− High CAPEX requirements
− Low logistics / FC capacity
− High dependancy towards
own white label products
− Low e-commerce
competencies
− Low scale advantages
− Pricing is only USP
− High operating cost
− Low logistics / FC capacity
− Mostly no own brands
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
8
ZOOPLUS AG IS DOMINATING THE EUROPEAN
ONLINE SPACE FOR PET SUPPLIES
1) total net market for pet supplies in Europe = online + offline market, based on Euromonitor International 2020 and management estimates
€ 25bn market opportunity
in Europe1
» CAGR ~3% p.a.
Pet Supplies still underrepresented in the online sphere
compared to other categories
zooplus is an important retail partner in Europe for brands
and driving digitization of category
Market is resilient to economic cycles
Highly recurring and fast turnover of product due to
constant demand
Low return rates and future growth prospects make for an
attractive category to operate in
16%
online
channel shift still ongoing
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
9
ZOOPLUS OFFERS A UNIQUE CUSTOMER PROPOSITION
IN EUROPE AND AN EXCELLENT CONSUMER EXPERIENCE
SEAMLESS SHOPPING
EXPERIENCE
ACESS TO ALL
LEADING PREMIUM
BRANDS
BEST VALUE FOR
MONEY & REWARDS
FAST & CONVENIENT
DELIVERY
our key drivers for consumer satisfaction in a digital world
DEDICATED
CUSTOMER CARE
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
10
ZOOPLUS IS THE ONLY CATEGORY SPECIALIST
WITH A PAN-EUROPEAN LOGISTICS NETWORK
SCALE ADDING TO RESILIENCE ADVANTAGE OF ZOOPLUS IN COVID-19 TIMES
TECH DRIVEN CAPACITY & REPLENISHMENT
FCs RUNNING AT FULL OUTPUT
PRODUCT AVAILABILITY
COMPETITIVE DELIVERY TIME
11 fulfillment centers across Europe operated by partners with low CAPEX requirement
SHELF SPACE FOR STOCKING UP
Fulfillment center (FC)
Hubs (DSP) - shown are selected
relations from FC to Hub of DSPs
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
11
COVID-19 AND PET SUPPLIES CATEGORY IN EUROPE
TACTICAL IMPACT ON BUSINESS
OPEN
Organic Traffic
Paid TrafficHelped us temporarily reduce our ad
spend without losing reach
Served as a push for first-time
e-commerce usage in our category
Consumption patterns remained
unchanged in our category
Offliners were classfied as essential
and did not go out of business
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
12
KEY FINANCIAL HIGHLIGHTS – STRONG PERFORMANCE IN
H1 2020
862
727
H1 2019H1 2018 H1 2020
643
FY 2018 FY 2019 FY 2020E
H1 2020H1 2018 H1 2019
FY 2018 FY 2019 FY 2020E
New Customer Sales
+24%vs. PY
+13%vs. PY
+19%vs. PY
+21%vs. PY
+14%vs. PY
+16%E
vs. PY
SALES (in EUR m) EBITDA (in EUR m, in % of sales)
-0.8%+0.6%
+3.4%
+0.6%
+0.8%
+2.3%E
-5.0
4.5
29.4
8.611.8
≥40.01,342
1,5241,765
Existing Customer Sales ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
STRATEGIC BUSINESS KPIS – ALL INDICATORS
SIGNIFICANTLY IMPROVED IN H1 2020
13
Revenue Retention and NC
2nd Order Sales are the key
contributors to sustainable
top line growth
Customer Acquisition Cost
significantly reduced
Own Brands Share is a key
driver for Gross Margin
Basket size increase is
helpful for operational
efficiency
H1 2018 H1 2019
Revenue Retention Rate
New Customer 2nd Order Sales
Customer Acquisition Cost (in €)
Own Brands Share (% of food Sales)
1)
1) Logistics costs + payment costs + customer care costs
94%
H1 2020
Gross Margin (% of Sales)
Basket Size (in €)
Operational Efficiency 1) (in % of Sales)
92% 95%
+20% -8% +21%
11 16 10
15%14% 17%
27.7% 28.4% 30.5%
54 55 57
22.0% 21.0% 20.8%
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
BETTER NEW CUSTOMER QUALITY IN H1 2020
TRANSLATES INTO SUSTAINABLE GROWTH
14
Key lesson taken from 2019 – we
need to focus on quality customers.
Only repurchasing accounts
contribute to future growth
Improved early stage cohort
behavior compared to H1 2019
cohort reflects revised acquisition
channel mix, unbiased customer
value proposition and better use of
loyalty & retention tools
Sales volume from 2nd order on with
strong increase – both driven by
loyalty and basket size
H1 2020H1 2019Repeat purchasing
new accounts
Sales
Accounts
Sales per Account
Share of new
accounts with
repeat purchases
1)
1)At least one consecutive order
2) Of all new accounts, note - only limited opportunity for repurchases after 6 months into the year of acquisition
2)
+21%
+14%
+6%
32%
-8%
-4%
-5%
28%
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
15
ZOOPLUS HAS A GROWING LOYAL CUSTOMER BASE
AND A HIGH REVENUE RETENTION RATE
1)All customers with one order in LTM;
2) All customers with one consecutive order (=at least 2 orders) in LTM; 3) Sales retention 12 months rolling
(net, non-BMF); All figures based on H1 2020 figures
H1 2019 H1 2020
H1 2019 H1 2020
+12%
+16%
ACTIVE CUSTOMER BASE1 (in k)
ACTIVE REPEAT CUSTOMER BASE 2 (in k)
7,195
8,062
4,117
4,781
95%Revenue Retention
Rate3
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
OUR NEW STRATEGY BALANCES
CUSTOMER QUALITY, SCALING AND EFFICIENCY
16
SPEND ON CUSTOMER ACQUISITION AND LOYALTY (AS % OF SALES)
Massive increase in new business
acquisition efficiency: budget at
50%, with new business at 120%
of PY
Tactical situation in months March,
April and May helped efficiency
91% → 95% revenue retention
increase driven by quality focus
and better use of retention and
loyalty tools
Main driver for growth:
consistently positive customer
experience throughout Q1 & Q2
1) New: Starter coupons; 2) Repeat: SaverPlan discounts
2019 / EUR 727 m 2020 / EUR 862 m
5.9%
4.2%Traffic
Acquisition
New Customer
Discount
Repeat Customer
Discount
Loyalty Program
3.8%
2.1%
1.9%
2.3%
1)
2)
3.3%
0.5%
1.7%
0.4%
1.7%
0.2%
1.7%
0.6%
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
17
LOYALTY PROGRAMS DRIVING CUSTOMER
RETENTION AND REPURCHASE RATE
- €3m
SaverPlan
zooPoints
zooplus APP
Best Value for Money
Interactive Shopping Experience
Multi-platform Shopping Experience
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
SALES VOLUME INCREASED BY EUR 136 m VS. H1 2019 –
GROWTH PATH CONTINUED IN Q2 2020
18
SALES (in EUR m)
zooplus continued to benefit from
strong online demand and high
loyalty of existing customers
Strong y-o-y development affirms
successful efforts on improving
customer activation and sales
retention combined with solid
sales execution
High growth of accessories sales
(+32% vs. Q2 2019) proves
success of the active steering of
the product sales mix meeting
increased customer demand in Q2
423440419
378363363+16%vs. PY
+21%vs. PY
+19%
vs. H1 2019
+14%vs. PY
+14%vs. PY
+14%vs. PY
+13%vs. PY
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
ZOOPLUS IS THE ONLINE MARKET LEADER IN EUROPE
AND IS GAINING SHARE FROM OFFLINE
19
ZOOPLUS SALES BY REGION IN H1 2020 (in EUR m)
246
142
95
80
71
69
61
51
49
IT
DACH
FR
NORDICS
BENELUX
PL
UK, IE
CEE
ES,PT
TOTAL MARKET SHARE1
+17%
+24%
+15%
+14%
+19%
+20%
+13%
+25%
+25%
6%
8%
9%
5%
3%
4%
6%
14%2
5%2
1)Total net market = online + offline market, based on Euromonitor International 2020 and management estimates as of June 2020 in relation to zooplus FY 2019 sales figures;
2) change vs . prior disclosure due to updated market data reflecting an overall larger total market in Poland and CEE; zooplus continues
to outperform total market growth in respective markets.
Pet supplies market1
EUR 25.3 bn
other than PL
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
GROSS MARGIN FURTHER IMPROVED IN Q2 2020 –
STRONG INCREASE COMPARED TO PY
20
GROSS MARGIN1
Sustainable increase in margin in
food segment driven by active
management of product sales
mix
Surge in demand for accessories
in Q2 and the continued trend
towards own brand sales driving
gross margin improvement
Solid yield management focusing
on loss leaders (avoidance)
supports positive development of
gross margin
1) Gross margin = sales – cost of goods (as a % of sales)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
28.7% 28.7%30.2% 29.4%
31.6%
28.2%
+2.1%p
vs. H1 2019
+1.2%pvs. PY
+2.9%pvs. PY
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
OWN BRANDS PORTFOLIO CONTINUES TO
OUTPERFORM TOTAL FOOD AND LITTER SALES
21
OWN BRAND SALES & SALES SHARE FOOD & LITTER (in EUR m)
High-margin business in the
mid to premium segment
contributing to gross margin
expansion
Growth index own brands / food
2.2 in Q2 2020 (H1 2020: 1.7)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
4952
6164 64
48
+32%
vs. H1 2019
16.5%
17.9%
16.7%
15.9%15.6%
15.3%
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
22
STRONG INCREASE OF BASKET VALUE –
DRIVER FOR LOGISTICS EFFICIENCY
Successful upselling measures
and incentives drive basket value
in H1 2020. Accessories sales
make a helpful contribution
Bigger baskets correlate
positively with repurchase
likelihood
Increased basked value with
positive impact on logistics cost
efficiency – Price increases in
delivery and additional logistics
cost related to protective COVID-
19 measures fully compensated
Based on order date
AVERAGE BASKET VALUE (NON-BMF; in EUR)
+0.4 €vs. PY
+2.4 €vs. PY
54.2
55.2
54.8
55.6
57.2
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
COST EFFICIENT OPERATION CREATING MOAT
FOR ONLINE AND OFFLINE COMPETITORS
23
COST STRUCTURE (in % of SALES)
1) Impairment expenses on financial assets reclassified to payment
2) Including LTI & SOP; own work capitalized reclassified to personnel
Reduced marketing spend vs. PY –
back in efficient territory while
increasing new business intake
Larger baskets prompting for higher
value per parcel, offsetting additional
cost for higher FC capacity
Increase in IT/ Admin cost base
reflecting higher non-operating
expenses for strategic projects
Ad./Marketing 3.3% 1.7%
1.1%
18.4%
1.1%
18.1%Logistics
Payment
3.5%
H1 2020
0.2%
1.9%
0.0%
3.7%
2.5%
H1 2019
IT/Admin
Personnel
FX gains & losses
1
2
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
EBITDA DRIVEN BY PRODUCT MIX & COST EFFICIENCY,
SOLID FREE CASHFLOW IN H1 2020
24
EBITDA (in EUR m)
+24.9
H1 2020H1 2019
29.4
4.5
CASH FLOW H1 2020 (in EUR m)
H1 2020H1 2019
6.9
29.6
3.4%
0.6%
% values: EBITDA margin (of sales)
+22.7
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
25
STRONG FREE CASHFLOW GENERATION UNDERLINES
OWN FINANCING CAPABILITIES OF ZOOPLUS
REINVEST INTO CUSTOMER GROWTH & CUSTOMER LOYALTY
REINVEST INTO STOCK AND PRODUCT AVAILABILITY
REINVEST INTO ENHANCING CUSTOMER EXPERIENCE
1
2
3
CLEAR PRIORITIES FOR CASH: FUEL FUTURE GROWTH
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
GUIDANCE 2020
(Updated on July 14, 2020)
UPDATED FINANCIAL YEAR 2020 OUTLOOK –
ZOOPLUS INCREASES TARGETS DUE TO RESILIENT DEMAND
27
UPDATED THE FINANCIAL YEAR 2020 OUTLOOK ON JULY 14, 2020
2020
approx. 240 m
2020E
225 m
2020E2020
at least 40 m
at least 20 m
May 7, 2020 May 7, 2020July 14, 2020 July 14, 2020
SALES GROWTH (in EUR m) EBITDA (in EUR m)
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
28
SHAREHOLDER STRUCTURE
As of July 29, 2020; Calculation based on a total number ov voting rights of 7,149,178; Share ownership according to published voting rights notifications;
Free float of 90.06% according to the definition of Deutsche Börse: ** including equity instruments
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
29
ZOOPLUS AG: THE DEDICATED PET SPECIALIST
REASONS TO INVEST IN ZOOPLUS AG
1)Euromonitor International Pet Care Quarterly Statement Q3 2020; Passport Report August 2020
(1) Leading player in the resillient pet supplies category and a booming pet market
(2) Dominating the European online space – only retailer present in 30 countries
(3) Pet care is expected to prove resistant to the recession created by COVID-191
(4) Fast growing additional ‚best value for money‘ own brands business next to
classical brand retail
(5) Revenue Retention Rate of 95% with an extremly loyal customer base
(6) Strong free cashflow generation and self-financing capabilities
(7) Underlying business is structurally profitable
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
30
IR CONTACT & FINANCIAL CALENDAR
Sonnenstr. 15
80331 Munich
Germany
Next publications Date
9-Monthly Report 2020 November 17, 2020 Investor Relations
ZOOPLUS AG | INVESTOR PRESENTATION | SEPTEMBER 2020
tel: +49 89 95 006 210
fax: +49 89 95 006 503
email: ir@zooplus.com
Web: investors.zooplus.com
Diana Apostol
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